Uganda's shilling has lost more than 11% of its value in October, touching UGX 4,500 per dollar on 23 October 2026 before closing the week near UGX 4,429 on Bank of Uganda counter rates, according to Tuko News. Other sources show slightly different levels because of timing and quote type: Bloomberg cited a Friday close of UGX 4,419.95, while Wise showed a mid-market rate near UGX 4,480 on 27 October. Tuko described the shilling as the world's second-worst performing currency against the dollar this month, behind Iraq's dinar.
How the slide unfolded
Around July the shilling traded near UGX 3,709 per dollar. Bank of Uganda research chief Adam Mugume pointed to speculative dollar buying, aided by excess shilling liquidity. Uganda Bankers' Association chief economist Enock Nyorekwa Twinoburyo said net FX demand from the energy sector rose to $620 million in the three months to September from $360 million a year earlier, and merchandise imports reached $2.31 billion in August, up 66.5% year-on-year.
The policy response
In September the central bank raised the cash reserve requirement from 11% to 13.5%. On 14 October an emergency Monetary Policy Committee meeting lifted the Central Bank Rate by 225 basis points to 12%. Governor Michael Atingi-Ego cited inflation risks, with inflation at 4.6% in September and projected at 7–7.5% over the next 12 months. The bank resumed direct dollar sales on 22 October. The Finance Ministry cut planned October–December operational spending by nearly UGX 3 trillion (about $682 million). President Yoweri Museveni reportedly blocked a proposal to draw down foreign reserves, arguing on 9 October that cutting non-essential imports would do more to ease dollar demand. Reserves were $6.7 billion in June, about 3.7 months of import cover, below the central bank's four-month target.
Who is exposed
Importers and households buying fuel, medicine and manufactured goods feel the move first. Reports say fuel prices exceed UGX 7,000 per litre in parts of the country, and annual inflation for gasoil, the fuel used by most trucks and buses, reached 42.5% in September. For retail forex users, the practical risks are wider spreads and weaker rates on cross-border transfers while volatility lasts. Use licensed providers and confirm payment details through official channels.
What to watch
The central bank's next moves, and whether the spending squeeze holds through the quarter, will help decide whether the shilling's slide stabilises or extends.
Uganda's shilling has lost more than 11% of its value in October, touching UGX 4,500 per dollar on 23 October 2026 before closing the week near UGX 4,429 on Bank of Uganda counter rates, according to Tuko News. Other sources show slightly different levels because of timing and quote type: Bloomberg cited a Friday close of UGX 4,419.95, while Wise showed a mid-market rate near UGX 4,480 on 27 October. Tuko described the shilling as the world's second-worst performing currency against the dollar this month, behind Iraq's dinar.
How the slide unfolded
Around July the shilling traded near UGX 3,709 per dollar. Bank of Uganda research chief Adam Mugume pointed to speculative dollar buying, aided by excess shilling liquidity. Uganda Bankers' Association chief economist Enock Nyorekwa Twinoburyo said net FX demand from the energy sector rose to $620 million in the three months to September from $360 million a year earlier, and merchandise imports reached $2.31 billion in August, up 66.5% year-on-year.
The policy response
In September the central bank raised the cash reserve requirement from 11% to 13.5%. On 14 October an emergency Monetary Policy Committee meeting lifted the Central Bank Rate by 225 basis points to 12%. Governor Michael Atingi-Ego cited inflation risks, with inflation at 4.6% in September and projected at 7–7.5% over the next 12 months. The bank resumed direct dollar sales on 22 October. The Finance Ministry cut planned October–December operational spending by nearly UGX 3 trillion (about $682 million). President Yoweri Museveni reportedly blocked a proposal to draw down foreign reserves, arguing on 9 October that cutting non-essential imports would do more to ease dollar demand. Reserves were $6.7 billion in June, about 3.7 months of import cover, below the central bank's four-month target.
Who is exposed
Importers and households buying fuel, medicine and manufactured goods feel the move first. Reports say fuel prices exceed UGX 7,000 per litre in parts of the country, and annual inflation for gasoil, the fuel used by most trucks and buses, reached 42.5% in September. For retail forex users, the practical risks are wider spreads and weaker rates on cross-border transfers while volatility lasts. Use licensed providers and confirm payment details through official channels.
What to watch
The central bank's next moves, and whether the spending squeeze holds through the quarter, will help decide whether the shilling's slide stabilises or extends.
